CII backtracks on withholding tax ruling, says no final decision made

Council clarifies reports suggesting it had reached a definitive conclusion are misleading

The Council of Islamic Ideology retracted its earlier statement declaring withholding tax on financial transactions as “un-Islamic,” clarifying that no final decision had been made on the matter.

The 342nd meeting of the CII on Wednesday described the withholding tax on fund transfers and cash withdrawals as excessive and inconsistent with Islamic principles in its initial communiqué. However, the council later issued a clarification on the matter.

The follow-up statement, titled “Clarification,” said that reports suggesting the council had reached a definitive conclusion were misleading. It explained that only a preliminary discussion took place among some members, during which opinions varied.

“The members have recommended consulting experts in the next meeting for a more detailed discussion,” the statement added. “No final decision has been made by the council on the issue under consideration.”

The CII also voiced strong opposition to the proposed amendments in the Diyat (blood money) law, particularly those altering the traditional Shariah-based valuations involving gold, silver, and camels.

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The council rejected the draft bill presented for the amendment, asserting that the Islamic measures for Diyat—based on silver, gold, and camels—must remain intact. The proposed changes included removing silver as a reference and adopting a non-Shariah-compliant standard for gold.

It also expressed reservations regarding a September 11, 2025, Supreme Court ruling that mandated Iddat (waiting period) and maintenance for non-marital women after divorce, calling it contrary to Quranic injunctions.

In response to an inquiry from the Ministry of Religious Affairs, the council agreed on a guideline for citizens to respect banners, flags, and inscriptions bearing sacred words during the month of Rabi‘ al-Awwal, avoiding any desecration.

On the subject of medication, the council advised diabetic patients to avoid insulin products containing pork-derived ingredients, noting that halal-certified insulin alternatives are now available in the market and should be preferred wherever possible.